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Promoting Private Sector Employment

Kosovo has grown moderately at an average rate of 4% in the last few years (pre-COVID 19) and is constantly facing growing labour force, while the labour market falls short of generating the jobs needed to absorb the new entrants (around 30,000 annually). Formal employment makes around 75% of the overall employment, with public sector accounting for 25% of formal jobs. Youth, women, and minorities (particularly the Roma, Ashkali, and Egyptian) remain the most excluded groups. The COVID-19 pandemic did not spare Kosovo’s economy from its devastating impact. Working towards economic resilience is a matter of urgency to enable SMEs survive its economic shock. On the other hand, sustainable sector growth has the highest potential to create SMEs and employment opportunities. Therefore, private sector development and job creation remains the main goals of SDC and of the Kosovo Government. 
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Kosovo
42.675116
21.164446
Kosovo
Project duration
2021 - 2025
A PROJECT OF

Swiss Agency for Development and Cooperation SDC

Project website

The project

The project contributes to innovation, consolidation, and sustainability in the Food and Natural Ingredients and Tourism sectors. Building upon the objectives, achievements, and lessons learned during the previous phase, in Phase III (2021 – 2025) the project will tackle private sector recovery, development,  and job creation with more emphasis on youth, women and minorities.

Through the Food and Natural Ingredients sector, PPSE facilitates the scaling of product development services usage, to influence innovation and product development. Facilitating further growth of the contract farming model for both medicinal aromatic plants and fruit and vegetables sub-sectors, the aim is to expand outreach and make this model sustainable. In terms of support services such as marketing, digitalization, and e-commerce PPSE facilitates models of affordable services tailored to the needs of sector SMEs.

Through the Tourism sector, PPSE facilitates capitalization of the established offer through private-public partnerships towards improved destination management, improved tourism product offer and reinstating the sector growth trends. This is achieved in close collaboration with private stakeholders via synergies between tourism businesses, agrobusinesses, souvenir producers, farmers, tourism product owners and guides. The goal is to build upon the adaptations that have emerged as a pandemic response, including re-focusing the tourism offer towards meeting the demands of the local, regional, and Diaspora tourists, to be achieved in cooperation with municipalities.

Through the cross-cutting themes of governance and gender equality and social inclusion, the project facilitates dialogue and advisory services for value chain actors, while exploring opportunities for engaging women and minorities, tailored to their needs.

PPSE collaborates and seeks synergies with the business sector, business organizations, central and local level public institutions, other donor agencies and projects.

Project goals

SMEs in the FNI and tourism sectors operate in an improved market system and grow to generate more inclusive and decent work opportunities, then women and men in Kosovo enjoy better income. This happens because SMEs and farms invest in product development for quality and diversification of offer and expand their production. At the same time, SMEs use professional and sustainable business support services, coordinate better among all stakeholders and consolidate the relevant sector organizations, hence improving their market presence and increasing sales.

Project partner

  • Riinvest Institute

Results

Project progress in Phase II, 2017 – 2021, results until the end of June 2021:

  • Interventions have generated 1,194 additional full-time jobs.
  • 3,950 women and men have been gainfully employed (benefit outreach). Of them, 36% are women and 6% are members of minority communities.
  • 3,950 people have generated CHF 6,39M in income.
  • 623 new farmers are involved in contracted farming, using over 1.196 additional hectares of land.
  • 240 small and medium enterprises have benefitted by increasing net income by CHF 2,743,400. The SMEs have invested CHF 6,31M.
  • In Food and Natural Ingredients and Tourism sectors combined, the number of resulting new products and services available has reached 259.

Expected PPSE III results, 2021 – 2025

  • Interventions are expected to generate 1,130 additional full-time jobs.
  • 3600 women and men (beneficiaries) expected to benefit from decent work opportunities by the end of 2025. Of them, 35% are women and 10% are members of minority communities.
  • Change in average yearly net income (salary/wage) of individuals, adjusted for inflation, CHF 3,800,000 in salary/wage cumulative.
  • SMEs have made additional investment value for new products and services: CHF 4,120,000.
  • SMEs will introduce new and improved products and services: expected 210 new/improved products and services.

Project Links

News

View all news from PPSE
Kosovo
Sustainable agriculture
23.06.2025
Kosovo’s food sector strengthens foundations for systemic rural growth
12 years of strategic collaboration, innovation, and export success set a blueprint for sustainable development.  
Learn more
Kosovo
Sustainable tourism
20.06.2025
Tourism that works for all
Promoting Private Sector Employment (PPSE) project's success lies in co-creating with public and private stakeholders for sustainable destination development.
Learn more
Kosovo
Sustainable agriculture
17.03.2025
Enhancing Coordination in Kosovo’s Fruit and Vegetable Processing Sector
As part of ongoing efforts to foster collaboration and systemic improvements in Kosovo’s agribusiness sector, PPSE project recently facilitated a roundtable discussion with the Kosovo Investment and Enterprise Support Agency (KIESA), Department of Rural Development Policies within the Ministry of Agriculture, Forestry, and Rural Development (MAFRD), sector associations, and the private sector.
Learn more